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Malaysia's Biggest Investment Forum > Stock Markets > KLSE (Moderators: ringgityen, Laughing Gor) > Don't Ignore Turnarounds - Can be VERY Profitable
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Author Topic: Don't Ignore Turnarounds - Can be VERY Profitable  (Read 1143 times)
bb
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« on: January 25, 2011, 08:06:51 AM »
Recent turnarounds:

1.  Hai-O:  Struggling with debts and poor business revenue.  Largely ignored.  Then its MLM business started to boom.  Smart investors got in early.  Soon the stock was covered by many analysts and some institutional funds also started buying.  The share price sky-rocketed rewarding the smart investors.  Alas, MLM business is not one with sustainability. 

2.  Berjaya Corp:  This diversified holding company faced numerous problems after the 1997-98 Asian Financial Crisis.  Its share prices tanked.  A lot of corporate exercise and restructuring took place.  Many of these were too complicated to follow.  Its share price was trading at 20 sen at one time and its convertible loan stock at 10 sen.  When the company turned around, its share was pushed to a high of MR 1.80 and its convertible loan stock to > MR 1.00.

3.  Latexx:  The first glove company to be listed.  Due to poor management and disastrous expansion to other countries, it was unprofitable for many years with large debts.  The creditors and the new management restructured the company.  The creditors were willing to convert their debt to equity and also received free warrants for their risk taking.  These warrants were priced closer to 10 sen each.  The company turned around with large profits during the super-profit year of 2009 and 2010.  Insiders and smart money that invested in this share soon after the corporate debt restructuring are now sitting on huge gains.  The share price is now about MR 2.60 and its warrants around MR 2.00.

Those who spotted and invested in these turnarounds would have made a lot of money. Cash Cash Cash

There is safety of capital and promise of reasonable and in these companies, fantastic high returns.

The risk of course is the turn-around did not materialise.  This is a small risk one has to bet on and manage.
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« on: January 25, 2011, 08:06:51 AM »
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deva74
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« Reply #1 on: January 25, 2011, 09:19:20 AM »
thanks for review
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bb
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« Reply #2 on: January 25, 2011, 09:49:35 AM »
IF and WHEN any of you spots a turn-around, please post here.

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immature
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« Reply #3 on: January 25, 2011, 09:56:33 AM »
Quote from: bb on January 25, 2011, 09:49:35 AM
IF and WHEN any of you spots a turn-around, please post here.

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MAXBIZ
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Ethan
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« Reply #4 on: January 25, 2011, 10:04:04 AM »
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stockraider
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« Reply #5 on: January 25, 2011, 10:57:41 AM »
Quote from: bb on January 25, 2011, 08:06:51 AM
Recent turnarounds:

1.  Hai-O:  Struggling with debts and poor business revenue.  Largely ignored.  Then its MLM business started to boom.  Smart investors got in early.  Soon the stock was covered by many analysts and some institutional funds also started buying.  The share price sky-rocketed rewarding the smart investors.  Alas, MLM business is not one with sustainability. 

2.  Berjaya Corp:  This diversified holding company faced numerous problems after the 1997-98 Asian Financial Crisis.  Its share prices tanked.  A lot of corporate exercise and restructuring took place.  Many of these were too complicated to follow.  Its share price was trading at 20 sen at one time and its convertible loan stock at 10 sen.  When the company turned around, its share was pushed to a high of MR 1.80 and its convertible loan stock to > MR 1.00.

3.  Latexx:  The first glove company to be listed.  Due to poor management and disastrous expansion to other countries, it was unprofitable for many years with large debts.  The creditors and the new management restructured the company.  The creditors were willing to convert their debt to equity and also received free warrants for their risk taking.  These warrants were priced closer to 10 sen each.  The company turned around with large profits during the super-profit year of 2009 and 2010.  Insiders and smart money that invested in this share soon after the corporate debt restructuring are now sitting on huge gains.  The share price is now about MR 2.60 and its warrants around MR 2.00.

Those who spotted and invested in these turnarounds would have made a lot of money. Cash Cash Cash

There is safety of capital and promise of reasonable and in these companies, fantastic high returns.

The risk of course is the turn-around did not materialise.  This is a small risk one has to bet on and manage.
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These are not turnaround.....these are fallen angels.....! Those counters that are in the spot light.....chase by many people at high price loh....!
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money_builder
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« Reply #6 on: January 25, 2011, 11:02:55 AM »
bb, Can MEGB consider such a potential turnaround in your view?
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bb
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« Reply #7 on: January 25, 2011, 11:07:21 AM »







These shares were beaten down justifiably due to poor or negative earnings.  When their business turned around for the better, their shares shot up many folds from their very low "(un-)justifiable pessimistic" prices. Smiley
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stockraider
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« Reply #8 on: January 25, 2011, 11:14:22 AM »
Quote from: bb on January 25, 2011, 11:07:21 AM







These shares were beaten down justifiably due to poor or negative earnings.  When their business turned around for the better, their shares shot up many folds from their very low "(un-)justifiable pessimistic" prices. Smiley


Warren Buffet adage " Turnaround seldom happens !".......! Make  sure u got margin of safety loh....if bungkus....still positive $$$$$$ profit mah.....then good safe buy loh...!
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SEA PEN
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« Reply #9 on: January 25, 2011, 11:22:25 AM »
BB always look back at claim this stock is turn-around or that.

The keywords of turn-around is the ability to detect it before it make a U-turn.
U see the car slow down, give signal at U-turn junction, that's the time to jump in.
Dont wait alreadi turn-around and accelarate then say it is a turn-around,
and also dont buy car who turn around on wrong juction and fall into the sea.

kih kih kih ....  Laugh Laugh Laugh
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bb
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« Reply #10 on: January 25, 2011, 11:41:28 AM »
Quote from: leno on January 25, 2011, 11:22:25 AM
BB always look back at claim this stock is turn-around or that.

The keywords of turn-around is the ability to detect it before it make a U-turn.
U see the car slow down, give signal at U-turn junction, that's the time to jump in.
Dont wait alreadi turn-around and accelarate then say it is a turn-around,
and also dont buy car who turn around on wrong juction and fall into the sea.

kih kih kih ....  Laugh Laugh Laugh

Leno,

Trust me, it is difficult to spot a turnaround.  Sometimes, you spot them through your screening and hardwork.  Occasionally, your contacts in the industry help.  There are so many ways to spot a turnaround.  Check my blog on these companies from the time their "justifiable pessimistic price"  Smiley started to turn to "unjustifiable pessimistic prices" to "fair prices"  ;)and then to "irrational exuberance prices"  Sad .

From the prices, you can judge when smart money Smiley, big money  ;)and dumb money  :(made their moves.
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bb
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« Reply #11 on: January 25, 2011, 11:45:03 AM »
Anyway, take this topic as an eye-opener to possible "special situation plays" in your satellite portfolio.  Such "investments" should not be part of your core portfolio.
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bb
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« Reply #12 on: January 25, 2011, 10:15:28 PM »
John Paulson makes $1bn betting on Citigroup recovery
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8280003/John-Paulson-makes-1bn-betting-on-Citigroup-recovery.html

John Paulson, the hedge fund manager who became a billionaire after predicting the US housing crash, has seen his fund generate $1bn betting on the recovery of US bank Citigroup.
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bb
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« Reply #13 on: January 25, 2011, 10:21:34 PM »
Quote from: bb on January 25, 2011, 10:15:28 PM
John Paulson makes $1bn betting on Citigroup recovery
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8280003/John-Paulson-makes-1bn-betting-on-Citigroup-recovery.html

John Paulson, the hedge fund manager who became a billionaire after predicting the US housing crash, has seen his fund generate $1bn betting on the recovery of US bank Citigroup.
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simplesoul
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« Reply #14 on: January 26, 2011, 07:50:21 AM »
Quote from: bb on January 25, 2011, 10:15:28 PM
John Paulson makes $1bn betting on Citigroup recovery
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8280003/John-Paulson-makes-1bn-betting-on-Citigroup-recovery.html

John Paulson, the hedge fund manager who became a billionaire after predicting the US housing crash, has seen his fund generate $1bn betting on the recovery of US bank Citigroup.

Would u take such a big bet? John paulson was gambling there Thumbs Down Yes, high risk high gains.....but what if? Many people go gambling also take big bets ma....some do make it, the Q: how many?

Just my dua sen Tongue

ps. i took a gamble with PETRA too, but only with close to 20% of my portfolio, I wouldnt do it with all my money. Just me....chicken heart!!!!
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klse2013
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« Reply #15 on: February 04, 2012, 03:38:50 PM »
Anymore potential company would be turnaround this year?
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gorengbursa
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« Reply #16 on: February 05, 2012, 01:40:06 AM »
Quote from: klse2013 on February 04, 2012, 03:38:50 PM
Anymore potential company would be turnaround this year?

MAS!
with its revenue that tripled airasia, this yr share price will definitely up before turnaround on 2013. But after turnaround with profit, surely oneday later it will again fall into deep loss due to bad management.

Haha.. So we havr to take profit when possible.
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« Reply #17 on: February 05, 2012, 01:54:50 AM »
Quote from: immature on January 25, 2011, 09:56:33 AM
MAXBIZ
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 Sweat Sweat Sweat Sweat Sweat Sweat
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OBKay
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« Reply #18 on: February 05, 2012, 05:37:41 PM »
Quote from: klse2013 on February 04, 2012, 03:38:50 PM
Anymore potential company would be turnaround this year?

Ramunia   Cool
Almost out of PN17  Tongue...any comments guys???
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Accerd
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« Reply #19 on: February 05, 2012, 05:47:02 PM »
Quote from: OBKay on February 05, 2012, 05:37:41 PM
Ramunia   Cool
Almost out of PN17  Tongue...any comments guys???



ready to goreng...what is the price anyway? muahahhaha
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